Sight Sciences (SGHT) Morgan Stanley 22nd Annual Global Healthcare Conference summary

Q2 performance and business trends

• Achieved double-digit sequential growth in Q2, with both surgical glaucoma utilization and active accounts up 5% sequentially, reaching 1,131 active accounts, nearly matching last year's peak before LCD uncertainty.

• Dry eye segment performed to expectations as strategy shifted toward market access.

• Gross margins remained strong at 86%, with operating expenses and cash utilization down over 30% year-over-year.

• Cash burn reduced from $75M in 2022 to $47M in 2023, and $20M in the first half of this year.

Guidance, pricing, and reimbursement

• Guidance narrowed due to TearCare, with a price hike to $1,200 (from under $300 ASP), effective October 1, and interim purchase limits to prevent stockpiling.

• Street consensus aligns with guidance of $81–$83M for the next two quarters.

• Expectation of formal TearCare coverage policies in 2025, with ongoing payer engagement and positive feedback from recent RCT data.

Market dynamics and growth opportunities

• LCD uncertainty in 2023 was resolved, with new LCDs expected to provide coverage for OMNI and SION by year-end.

• Proposed device-intensive status could boost OMNI facility fees by ~$600, potentially finalized in Q4 and effective January, providing a tailwind for 2025.

• Standalone MIGS market seen as a $4–5B TAM, with ongoing efforts to accelerate adoption and shift provider mindset.

• MIGS market remains highly competitive, but double-digit market growth and product differentiation support future share gains.